What is a home appraisal?
An appraisal gives you and your lender an estimate of a home’s value. It helps make sure your offer, the purchase price, is in line with the home’s fair market value. To make an appraisal, the home is inspected and compared to similar homes in the area that have been sold within the last six to twelve months. While PrimeLending chooses who will conduct the appraisal, this is generally an expense paid for by the buyer.
Some of the things that are considered in the appraisal include:
If you're selling your home.
Once you have an offer to buy your home you can expect the buyer’s lender to send an appraiser to inspect the house. Before this happens, you need to make sure your home is ready.
Correct any maintenance or other issues related to health or safety. Make any obvious cosmetic repairs you’re aware of. Get rid of clutter and make sure it’s clean. Prepare a list of recent repairs or renovations for the appraiser, include the dates/costs of the repairs along with receipts. A home that looks cared for will can result in a better and higher appraisal.
Be sure to place pets out of the way while the appraiser is onsite and don't water the yard right before the appraiser arrives. The appraiser will need full access to your home, including the closets, attic and crawl space, etc.
Here are a few potential problem areas an appraiser will look for: